Building committee suggests spring proposal

WEST BOYLSTON 
The likelihood of West Boylston residents being asked to purchase a town hall before the end of this fiscal year just increased.

The Facilities Implementation and Strategic Planning Committee (FISP) last week voted to seek a Proposition 2 1/2 debt exclusion for the purchase of The Three Rivers Building on Worcester Street and the Bethlehem Bible Church on Lancaster Street to house the town's offices, senior center and to dedicate an official space for recreation and a community center.

The board called for a special town meeting in May, and a ballot vote to coincide with the town election and special U.S. Senate election scheduled for June 25.

But, there are still a lot of factors yet unknown, prompting Town Administrator Leon Gaumond Jr. to caution that the election is still speculative.

First, the matter still requires the Board of Selectmen to approve the request for a debt exclusion. However, that seems an unlikely hindrance. All five selectmen are members of the building committee, and three were in attendance last week during the unanimous vote.

But, there is still the question of the building. The committee moved forward on setting dates for a town meeting and election, but offered no details, such as cost or even an address. All of those discussions are still taking place behind closed doors because negotiations are incomplete, Gaumond said.

“This may not even happen,” Gaumond said. “They are still negotiating with the property owners. Those negotiations could fail.”

Gaumond said he favors a longer public marketing campaign as a way of getting voters to buy into the idea. However, when Gaumond suggested a lengthier timeline, Selectman Kevin McCormick responded by saying: “Someone could come along and buy the Three Rivers Building and we will have wasted all this time.”

Two previous building proposals have failed. One was quashed by the Board of Selectmen after the then-Building Committee brought forward a project that would have solved all of the town's building deficiencies, but at a cost over $26 million.

A later proposal to purchase an existing building at 150 Hartwell St. for uses as a town hall, senior center and public works or fire department headquarters was defeated by voters twice, and not supported by the Finance Committee (see related story, below).

And the selling of the idea may not be as easy as once believed. One of the committee's long-stated strategies will not work with two buildings.

Selling a tax increase

Early in the process, Finance Committee liaison Ray Bricault said the town should capitalize on the near $700,000 in prior debt exclusions that will come off the tax rolls between 2012 and 2019.

However, that was when considering a purchase of around $1.5 million, not the estimated $3 million it will cost to buy and renovate both buildings being looked at now.

Initially, the committee was looking at purchasing the Flagg RV property on West Boylston Street. It was believed the property could be purchased and the senior center could immediately be moved in for about $1.5 million. Other projects, like a new police station, could be put off for years, since the town would own the property. This would spread out new borrowing as old bonds were paid.

FISP ended negotiations with Flagg in January. It immediately turned its attention toward The Three Rivers property, It is on the market, but owners did not respond to the town's earlier requests seeking sellers.

While Three Rivers is on the open market at around $1.6 million, adding the church for roughly another $1 million – and renovations of those properties – was not factored into Bricault's earlier formula.

There would be some reduction on tax bills as other loans are paid off, but any reduction would not be as mitigating as originally thought.

The cost of borrowing $3 million for 30 years would cost (estimated on current rates) $61.25 on a $250,000 home during the first year, reducing annually to around $32 in 2044. The numbers are around $98 and $51, respectively, on a $400,000 home.

The “concept” of the group's original plans works though, Bricault noted, “it's just not a wash.”

A loan on $1.5 million would cost the town about $163,000 annually. Compare that to the town's current rent, now about $110,000, add utilities for a new building and the loss of the $18,000 in taxes now paid for The three Rivers Building, and the purchase of one building is about equal or a light savings for the town over the length of the bonds, Bricault said.

However, any amount over $1.5 million is cost for taxpayers.

Though that early marketing plan may not hold true, other FISP committee members said there is value for the town. Specifically, the town has building needs that are not going away. Gaumond told the committee the town's rent is “almost certainly” going to increase in the near future.

While there will be some impact on tax bills, it will be less than the impact of a construction project, committee members said.

“There is no way to build a town hall like this (Three Rivers) building for $1.5 million,” Selectman Christopher Rucho said.

Members Bruce Peterson and John Hadley, who have experience in commercial building projects, agreed, as did McCormick.

“This is the best deal we have been able to come with, ever,” McCormick said.

But the challenge now becomes, how to sell the idea to voters in only a few months time.

The committee plans to meet multiple times during March and April to come up with sound numbers. Those will include renovation costs, and estimates for other costs, like the installation of a phone system and vault, and utilities, which are now covered in the town's lease agreement.

In April or May, McCormick wants multiple public forums, held in different locations and at different times. From the feedback of those meetings, a frequently asked questions list will be developed.

All of that information will then be combined into an informational pamphlet to be distributed before town meeting, which will likely be toward the end of May.